Operating Revenue

6 Months Ended

Jun. 30, 2020

Note 4. Operating Revenue

The Companies’ operating revenue consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
(millions)
Dominion Energy
Regulated electric sales:
Residential	$	1,091	$	1,094	$	2,249	$	1,740
Commercial		728		889		1,526		1,385
Industrial		176		217		358		247
Government and other retail		193		214		412		414
Wholesale		29		41		62		89
Nonregulated electric sales		177		175		409		491
Regulated gas sales:
Residential		182		177		730		779
Commercial		63		73		254		264
Other		16		25		44		63
Nonregulated gas sales		33		71		116		318
Regulated gas transportation and storage:
FERC-regulated		247		247		528		524
State-regulated		182		166		414		379
Nonregulated gas transportation and storage		176		174		351		348
Other regulated revenues⁽¹⁾		98		82		173		126
Other nonregulated revenues⁽¹⁾⁽²⁾		79		101		167		209
Total operating revenue from contracts with customers		3,470		3,746		7,793		7,376
Other revenues⁽³⁾		115		224		288		452
Total operating revenue	$	3,585	$	3,970	$	8,081	$	7,828
Virginia Power
Regulated electric sales:
Residential	$	818	$	808	$	1,714	$	1,731
Commercial		546		681		1,160		1,317
Industrial		89		118		186		230
Government and other retail		177		197		380		401
Wholesale		21		29		45		66
Other regulated revenues		94		62		156		88
Other nonregulated revenues⁽¹⁾⁽²⁾		20		19		33		33
Total operating revenue from contracts with customers		1,765		1,914		3,674		3,866
Other revenues⁽²⁾⁽³⁾		40		24		61		37
Total operating revenue	$	1,805	$	1,938	$	3,735	$	3,903
Dominion Energy Gas
Regulated gas sales - wholesale	$	—	$	—	$	2	$	2
Nonregulated gas sales⁽²⁾		—		1		1		3
Regulated gas transportation and storage⁽²⁾		302		306		646		646
Nonregulated gas transportation and storage		175		173		350		348
Management service revenue⁽²⁾		29		45		60		88
Other regulated revenues⁽¹⁾		2		3		3		6
Other nonregulated revenues⁽¹⁾⁽²⁾		1		1		2		1
Total operating revenue from contracts with customers		509		529		1,064		1,094
Other revenues⁽²⁾		1		1		2		2
Total operating revenue	$	510	$	530	$	1,066	$	1,096

Amounts above include sales which are considered to be goods transferred at a point in time. Such amounts included $19 million and $— million for the three months ended June 30, 2020, $42 million and $2 million for the three months ended June 30, 2019, $58 million and $1 million for the six months ended June 30, 2020 and $93 and $3 million for the six months ended June 30, 2019, primarily consisting of NGL sales at Dominion Energy and Dominion Energy Gas, respectively. Additionally, amounts above include sales of renewable energy credits. Such amounts included $7 million and $5 million for the three months ended June 30, 2020, $4 million and $2 million for the three months ended June 30, 2019, $11 million and $8 million for the six months ended June 30, 2020 and $7 million and $3 million for the six months ended June 30, 2019, at Dominion Energy and Virginia Power, respectively.

2)	See Notes 10 and 19 for amounts attributable to related parties and affiliates.

Amounts above include alternative revenue of $39 million and $21 million at Dominion Energy and $34 million and $18 million at Virginia Power for the three months ended June 30, 2020 and 2019, respectively, and $75 million and $35 million at Dominion Energy and $51 million and $26 million at Virginia Power for the six months ended June 30, 2020 and 2019, respectively.

The table below discloses the aggregate amount of the transaction price allocated to fixed-price performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period and when the Companies expect to recognize this revenue. These revenues relate to contracts containing fixed prices where the Companies will earn the associated revenue over time as they stand ready to perform services provided. This disclosure does not include revenue related to performance obligations that are part of a contract with original durations of one year or less. In addition, this disclosure does not include expected consideration related to performance obligations for which the Companies elect to recognize revenue in the amount they have a right to invoice.

Revenue expected to be recognized on multi-year contracts in place at June 30, 2020	2020		2021		2022		2023		2024		Thereafter		Total
(millions)
Dominion Energy	$	823	$	1,567	$	1,475	$	1,315	$	1,190	$	13,095	$	19,465
Virginia Power		2		1		—		—		—		—		3
Dominion Energy Gas		899		1,719		1,585		1,402		1,248		13,280		20,133

Contract assets represent an entity’s right to consideration in exchange for goods and services that the entity has transferred to a customer. At June 30, 2020 and December 31, 2019, Dominion Energy’s contract asset balances were $25 million and $28 million, respectively. Dominion Energy Gas’ contract asset balances were $35 million and $40 million at June 30, 2020 and December 31, 2019, respectively. Dominion Energy and Dominion Energy Gas’ contract assets are recorded in other deferred charges and other assets in the Consolidated Balance Sheets. Contract liabilities represent an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration, or the amount that is due, from the customer. At June 30, 2020 and December 31, 2019, Dominion Energy’s contract liability balances were $109 million and $123 million, respectively. At June 30, 2020 and December 31, 2019, Virginia Power’s contract liability balances were $37 million and $24 million, respectively. At June 30, 2020 and December 31, 2019, Dominion Energy Gas’ contract liability balances were $21 million and $20 million, respectively. The Companies’ contract liabilities are recorded in other current liabilities and other deferred credits and other liabilities in the Consolidated Balance Sheets.

The Companies recognize revenue as they fulfill their obligations to provide service to their customers. During the six months ended June 30, 2020 and 2019 Dominion Energy recognized revenue of $106 million and $91 million, respectively, from the beginning contract liability balances. During the six months ended June 30, 2020 and 2019, Virginia Power recognized $24 million and $22 million, respectively, from the beginning contract liability balance. During the six months ended June 30, 2020 and 2019, Dominion Energy Gas recognized $1 million and $28 million from the beginning contract liability balance.